….that Einstein probably never said?
Shame. You’ll be telling us next that divorce lawyers, journalists and politicians are having a hard time, and then we’ll really have to get the tissues out.
Falling prices, tighter credit and uncertainty ahead of a federal election and the final report of the banking royal commission mean a busier year for agents on the country’s eastern seaboard as they sell an increasing stock of homes on the market.
I’m not sure that statement is completely accurate; perhaps replace “busier” with “tougher”?
As several commentators on here have pointed out, in a falling market most sellers will rethink whether they really need to move. There’s a high degree of emotion attached to the perceived value of one’s house and the attitude that “it’s worth $x and I won’t take a penny less” can be deeply ingrained.
So therefore we may well see far fewer properties up for sale this year. Those who have to sell due to death, divorce or unsustainable debt will be the exceptions.
Something else will need to change too, although Eliza McGrath hasn’t spotted it yet;
Our first open [day] is on 19 January. Then we’re extending it to be a five-week campaign with the first auction on 16 February.
Given that fewer than 1 in 2 properties are selling at auction, it seems somewhat poor advice to her clients to chuck a bunch of cash at a marketing campaign and planning for an event that has a higher probability of disappointment than ever before in living memory.
Finance is getting harder to get,” McGrath says. “So getting a five-week campaign is more standard. Some people are asking for six weeks. They know from trying to buy themselves how hard it is to get pre-approval.
She’s not getting the hint, is she? The auction favours the seller only in a rising market, that power dynamic reverses on the way down.
A search for her on Google Images explains why. She looks like she is barely 30 years old. The last time the market was like this she wouldn’t have been potty trained.
Ren Hor Wong seems to have a better idea, however;
“Given the current market condition and low auction clearance rate, vendors’ confidence is low when it comes to selling,” chief executive Ren Hor Wong said.
“We see a surge in listings activity, but majority of them would not go to auction, and some probably don’t even want to go for a marketing campaign.”
This is interesting too;
“So it’s imperative for agents to have a database of finance-ready buyers”
He might regret dropping that gem into the interview. He’s just told his competitors a good tip on how to survive this year, if they are clever enough to listen.
He’s got some other intelligent insights too;
Going off market also allows the seller to save marketing costs, a key for vendors at this low point in the market, Wong adds.
“When you can’t ask for a higher price in the market, next thing you want to do is to save money,” he says.
Smart thinking; drop the price and lower your sales costs.
Meanwhile, on Planet Millennial, reality hasn’t arrived yet;
McGrath isn’t sure what will come. The year is likely to start well, but it is hard to see further beyond, she says.
“We’ll have a strong start to 2019, like 2018 did, but it’s hard to say what’s after the first quarter, with the election coming up and the royal commission [final report],” she says.
I bet you won’t, Eliza, I bet you won’t.
For some time now, being an estate agent on the east coast of Australia required nothing more challenging than possession of a cheap suit, a driving licence and pulse.
Things have changed this year. There will be significant consolidation of agencies and a huge reduction in the number of agents employed.
The question is, what does one do as an alternative job if all your previous work experience consisted of handing out leaflets at open houses for the last decade?
The price of Uber journeys and dog waking services in Melbourne and Sydney are likely to reduce significantly.